The school inspectorate, Ofsted, is in the doghouse again. One of its inspectors is said to have demanded a school carry out a risk assessment on the headteacher's west highland terrier, the Times Educational Supplement reports today.

Rosie, an 11-year-old terrier, is patted by pupils of the New school in Exminster, Devon, as she roams its corridors. Michelle Taylor, the school's head, who found Rosie at a rescue home, says she is "the most docile animal you've seen in your life … The children love her and they give her a hug if they're upset."

But a report from an inspector, who made a surprise visit in February, demanded the school "conduct a risk assessment relating to the safety of the premises and the presence of a pet dog".

Taylor, who checked Rosie was safe with children, was dumbstruck. "Occasionally she will go to the toilet, but the children tell us and we clean it up."

Fortunately another inspector confirmed all was in order. "A risk assessment has been undertaken and pupils have been instructed to wash their hands after handling or stroking the dog. Some pupils were noted doing this. No concerns have been expressed by parents," he said.

It comes less than a month after Ofsted was criticised for failing a school because its inspectors were offered coffee before they were asked for identification and after two policewomen were warned by inspectors not to care for each other's children. An inspector told best friends Leanne Shepherd and Lucy Jarrett they were breaking the law by sharing their childcare responsibilities.

Ofsted said the inspectorate had been following up a complaint about "the health and safety of the children owing to the poor repair of the building and the presence of the dog".